TRADING BANKS

New Zealand Herald, Volume LXXIII, Issue 22427, 25 May 1936, Page 13

TRADING BANKS

APBIL STATEMENTS

DEPOSIT LEVEL HIGHER

RISE IN LONDON ASSETS :

The monthly statements, of, assets and liabilities of the six trading banks at the close of business on Monday, April 27, have been gazetted; * • •

Notes of the banks' own issues to the value of £537,624 were outstanding at "the date of the return. This figure is only £7630 less than the value a month before, indicating how greatly the rate of their return to the banks has decreased. Between February 24 and March 30 there was a decrease of £14,800, or nearly twice as much as that recorded in the latest period. At this rate there seems likely to be at least £500,000 'vorth of trading bank notes still on issue when the Reserve Bank takes over responsibility for thenj at the beginning of August. The active note circulation, made up of the unreturned issues of the trading banks and Reserve Bank notea in the hands of the public, amounted to £7,150,681 at April 27. This was over £45,000 more than a month before, and indicates a considerable demand for cash currency to finance ordinary or retail trading. The position in the latest return, compared with those a month, three months, six months and a year before, is shown in the following table:— 1935 T. Banks R. Bank Total April 29.. £800,302 £5,579,039 £6,379.341 1936 8 '" 619,912 5,898,432 6,518,344 Jan. 27 .. 671,768 6,265.992 6,837,760 March 30 . 545.254 6,559,787 7,105,041 April 27 .. 637,624 6,613,057 7,150,681 i Movements ol Deposits Free deposits, or current account balances, were some £103,000 greater than at March 30, but this sum shows a slackening of the pronounced rise that has taken place since September. The flush of the export season is now over, and the returns from produce sold are not affecting the banking position as they were. Fixed deposits, which fell by roughly £500,000 between January and March have risen again by nearly £BOO,OOO to a total greater than any recorded during 1935. A comparison of free and fixed deposits and the totals of the two at April 27 and one month, three months, six months and a year previously is as follows:-

1935 Free Fixed'' ' Total 1 April 29 £27,095,334 £35,755,004 £62,850,338 Oct. 28 . 24,922,428 36,192,335 »61,114.763 1936 Jan. 27 . 28,527,915 37,033.607 65,861,522 March 30 31,946.454 36.529,960 68.476,414 April 27 32,049,252 37,310,826' * 69,360.078 The advances and discounts at the date of the return amounted to £45,090,868, discounts accounting for £486,961 ot the total. The combined amount is some £172,000 greater than that at the end of March, but is still" nearly £500,000 below the level .on. January 27. The increase in the. total of deposits has made their excess over advances some £700,000 greater than in the March return. The movements over 12 months are shown in the following table, giving the latest figures, compared with.those a month, a quarter, a half-year -and a year previously:—• * ,f ~ 7 ■v Excess of 1935 Deposits Advances £ i Deposits April 29 £62,850,338 £45,400, 70g £17,449,630 Oct. 28 61,114,763 46,877.287 14,237,476 1936 • / i . Jan. 27 65.861,522 45.649,334 20,212,188 March 30 68,476,414 44,918,852 23,657.561 April 27 69,360,078 45,090,868 24,269,210 The Overseas Assess .. . •_ '-s The value of assets held in London by the banks on account of New Zealand business has increased by neatly £1,840,000, compared with tie level of March 30. The total is now netrly £5,000,000 greater than at ifche end of January, though still £2,280,000 below the value so held in April iast year, when the figure was almost at its peak. Similar overseas assets held elsewhere than in London have increased- by approximately £BO,OOO. The "figures showing thesir overseas assets, held on New Zealand account, compared at intervals-of one .month, three, six and 12 months, are as follows: 1935 London Elsewhere Total April 29 £18.266,133 £7.081,884 £25.348.017 Oct. 28 12,293,367 5.764,513 18.057,880 1936 Jan. 27 11,149,879 6,183,192 i 17,333,071 March 30 14.143,369 6,226,321 20,369.690 April 27 15,980,160 6,305,068 22,255,228 The subsidiary coin held at April 27 was valued at £738,083, compared with £754,019 on March 30. The return also shows gold to the value of £723 held by the banks, against £694 in the March return.